Bay Street Likely To Open Lower

(RTTNews) - Canadian shares are likely to open with a negative gap on Wednesday, tracking weak global cues. Higher crude oil and gold prices might help limit market's downside.

Worries over U.S. debt deal and caution ahead of the release of minutes of the Federal Reserve's latest policy meeting pushed down Asian and European stocks. U.S. futures are also down in negative territory.

The U.S. Treasury Department has asked federal agencies whether they can make upcoming payments at a later date, the Washington Post reported, citing two people familiar with the matter.

U.S. Treasury Secretary Janet Yellen previously warned lawmakers that a default in early June is "highly likely."

The Canadian market ended notably lower on Tuesday, weighed down by losses in technology, industrials, materials and consumer sectors. Worries about growth and interest rates, and concerns over a standoff in U.S. debt ceiling talks weighed on sentiment.

The benchmark S&P/TSX Composite Index ended down 205.05 points or 1.01% at 20,146.01, slightly off the day's low.

Asian stocks fell on Wednesday as worries over U.S. debt deal persisted, and investors awaited cues from industrial sector surveys in Europe and the United States.

European stocks are down sharply as U.S. debt ceiling talks dragged on and investors waited for the minutes from the Federal Reserve's meeting earlier in May for additional clues on the Fed's rate hike path.

In commodities, West Texas Intermediate Crude oil futures are up $1.16 or 1.59% at $74.07 a barrel.

Gold futures are gaining $6.20 or 0.31% at $1,980.70 an ounce, while Silver futures are down $0.109 or 0.46% at $23.515 an ounce.